Promoters infuse Rs 100 crore capital in Liberty General Insurance
The insurer said in a statement that the current promoters are subject to a lock in period of five years as stipulated by the regulator. This means that they cannot sell their stake before 2023
August 29, 2020 / 07:15 AM IST
Non-life insurer Liberty General Insurance on August 28 said its promoters have infused Rs 100 crore.
The company also denied market rumours and speculation of any stake sale. A report had stated that Sachin Bansal is looking to buyout its promoters: American insurer Liberty Mutual Insurance Group, Enam Securities, and DP Jindal Groupd.
“The promoters remain confident of the company’s ability to build a substantial business in India. With a further infusion of additional capital of Rs 100 crore made in July by its promoters, the total invested capital including share premium is now Rs 1,834 crore,” Roopam Asthana, CEO & Whole Time Director of Liberty General Insurance, said.
He added that this fresh capital infusion by the promoters amid prevailing difficult economic situation in the country indicates their commitment and confidence in the insurer’s ability to grow profitably for many years to come.
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Liberty General Insurance (LGI) had undergone a shareholding change in February 2018 after Videocon sold its 51.32 percent stake in the non-life insurer to DP Jindal Group and Enam Securities.
The insurer said in a statement that the current promoters are subject to a lock in period of five years as stipulated by the regulator. This means that they cannot sell their stake before 2023.
The company has undergone several rounds of capitalisation thereafter and is financially strong with solvency ratio of 2.65 (as on June 30) as against required the regulatory solvency ratio of 1.5.
For the April 1-July 31 period, Liberty General saw a 10.7 percent YoY decline in gross direct premium to Rs 437.05 crore. For July, gross premium was flat at Rs 117.5 crore compared to Rs 118.7 crore in the year-ago period.